Memphis City Councilman forms committee to reduce local government health costs

A committee is trying to find ways to reduce government health insurance costs by encouraging separate local government entities to cooperate.

The committee's leader is Edmund Ford Jr. He serves on the Memphis City Council, but his day job is teaching algebra to ninth-graders at Central High School. He says that a few months ago, staffers at the school told him that their health insurance premiums had risen sharply, and they wanted him to look into it.

Ford's premiums were different. Unlike his work colleagues, he's insured through the city government, not the Shelby County Schools, and he pays a premium of $81 per two-week pay period as a single man in the "premier" health care plan, compared to the $88 he'd pay if he were insured through the county school system.

He found the difference in basic family coverage is even more dramatic: $159 every two weeks at the city and county governments versus $258 in the school system. Meanwhile, employees with Memphis Light, Gas and Water Division paid $179.

Despite the different premiums, employees with the four major entities are covered by the same insurance company, Bloomfield, Conn.-based Cigna.

"What shocked me was Shelby County Schools, with the larger pool of individuals, they were paying the highest premium," Ford said.

The premium figures that employees pay don't take into account the amounts that governments contribute — in many cases, significantly more, according to a work sheet Ford's office released.

To look for solutions, Ford created an ad hoc committee that involves representatives of Cigna and government entities.

Ford said the group, which has been meeting since the fall, aims to save taxpayer money for governments and for employees.

On Thursday, representatives of Cigna and the city and county governments met and agreed to look into the possibility of creating a joint program for employee wellness efforts. Such efforts aim to avoid big health care claims by encouraging workers to avoid unhealthy habits such as smoking.

All four government entities currently run separate employee wellness programs, said Gertie Ryan, benefits operations manager for the city of Memphis. The goal is to create a program that would include all four government agencies.

Ford said he's scheduled to meet with employee labor unions on Thursday to discuss the issues.